Problem Statement
As indicated by Yallapragada and Bhuiyan (2011) small businesses claim at least 39% of America?s GDP and create roughly 2 out of the possible 3 jobs in the evidenced economy. Nonetheless, the SBA (2014) suggested that 1/3 of novel businesses do survive more than 10 years and only about half survive more than 5 years. Similarly, every year, the number of novel businesses that start is almost equal to that number of businesses that close down due to the notion of failure (Yallapragada & Bhuiyan, 2011). In perspective, the fundamental problem that the new entrants face is the way they embark on business initiative without full preparations. As such, it is proper to say that a large portion of small business owners have inadequate strategies that are aimed at achieving profitability. For example, in the year 2012, roughly 160 small business owners that deal with auto dealership in the US failed and experienced a subsequent closure of their businesses. Additionally, at least 200,000 workers in the auto dealership jobs lost their employment when their industry leaders failed and then filed for bankruptcy states (Williams, 2012). In this case, about 31.6% of the auto dealer owners operate their business for up to 3 years while about 5.3% of the dealers go beyond 5 years (Suter & Bwisa, 2013). Indeed, the generalized problem for the small individuals, in the case of auto dealership is that the business owners do not have t…
